It's Official: Compaq Shuts Down Alpha

As expected, Compaq announced yesterday that it will use Intel's Itanium microprocessor in all the company's servers, replacing the Alpha chips it acquired with the purchase of Digital Equipment 3 years ago. The company entered into a deal with Intel in which it will license its Alpha technology to Intel for the Itanium; the companies didn't reveal the financial details. Compaq will issue one final version of the Alpha, then transition to Itanium over a 3-year period.

"Our move to the Itanium architecture provides customers and independent software vendors with the most compelling roadmap to next-generation server technology," said Michael Capellas, Compaq's chairman and CEO. "Customers get increased performance, price/performance, and application support. This reinforces our commitment to customer investment protection as well as providing the best path for future growth. We believe Intel's architecture is the best choice for the enterprise, and for our customers this is truly the best of both worlds."

As part of the deal, Compaq will transfer hundreds of employees and unspecified Alpha-related equipment and tools to Intel.